A Foreign Subsidiary of Dallas Jeans Corp

question 12

Multiple Choice

A foreign subsidiary of Dallas Jeans Corp. (a U.S. firm) has certain balance sheet accounts on December 31, 20X9. The functional currency is the U.S. dollar and currency of record is the peso and the parent's books are kept in U.S. dollars. Information relating to these accounts in U.S. dollars is as follows: What amount should be included as total assets on Dallas Jean's balance sheet on December 31, 20X9 as the result of the above information?

• A)$645,000
• B)$765,000
• C)$770,000
• D)$785,000

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Definitions:

Unionized

Refers to workers or an organization that is part of a trade union, which negotiates wages, working conditions, and other employment terms.

Labour Relations Board

A government agency responsible for overseeing labor laws and resolving disputes between employers and unions.

Management Rights Clause

A section in a labor agreement that defines the rights and responsibilities of management to run and operate the company without interference.

Supreme Rights Clause

A legal provision asserting the primary authority of a nation's constitution or laws over any conflicting laws or agreements.